NZD/USD jumps 20 pips as New Zealand lowers unemployment forecast

  • The NZD finds buyers as Prefu sees a lower unemployment rate for the June quarter. 
  • NZD/USD jumps 20 pips to hit session highs above 0.6720. 
  • Risk-on could power stronger gains in the New Zealand currency. 

The New Zealand dollar is drawing bids and pushing the NZD/USD pair with New Zealand's pre-election economic and fiscal update (Prefu) lowering the peak jobless rate forecast to 7.8% from 9.8% projected in the budget. 

The pre-election update also revised the June quarter gross domestic product (GDP) forecast to -16% from the previous projection of -23.5%. 

"The initial economic impact of COVID-19, while still large, has been less severe than anticipated in the Budget Update, with a faster-than-expected move down alert levels, and high-frequency activity indicators suggesting activity has picked up sooner than expected," the report said. 

However, inflation is likely to remain low due to weaker commodity prices and a strong exchange rate, the report added. So far, however, markets have ignored the dismal inflation forecast. 

The NZD/USD pair has risen from 0.6702 to 0.6722 on the pre-election update but remains well below Tuesday's high of 0.6737. However, that level could come into play during the day ahead if risk sentiment remains strong, keeping the safe-haven greenback under pressure. 

The futures tied to the S&P 500 are currently trading flat. Analysts at JPMorgan believe the stock market pullback has ended, according to Bloomberg. 

Technical levels


Today last price 0.6722
Today Daily Change 0.0007
Today Daily Change % 0.10
Today daily open 0.6714
Daily SMA20 0.6657
Daily SMA50 0.6625
Daily SMA100 0.6458
Daily SMA200 0.6391
Previous Daily High 0.6737
Previous Daily Low 0.6683
Previous Weekly High 0.6724
Previous Weekly Low 0.6601
Previous Monthly High 0.6764
Previous Monthly Low 0.6488
Daily Fibonacci 38.2% 0.6716
Daily Fibonacci 61.8% 0.6704
Daily Pivot Point S1 0.6686
Daily Pivot Point S2 0.6657
Daily Pivot Point S3 0.6632
Daily Pivot Point R1 0.674
Daily Pivot Point R2 0.6765
Daily Pivot Point R3 0.6794



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